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NATIONAL ECONOMICS UNIVERSITY

BTEC HND IN BUSINESS AND MANAGEMENT
Assignment Cover Sheet

NAME OF STUDENT
REGISTRATION NO.
UNIT TITLE
ASSIGNMENT TITLE
ASSIGNMENT NO
NAME OF ASSESSOR
SUBMISSION DEADLINE

Nguyen Tuan Linh

1013107073
Unit 7: Business Strategy
Strategy Formation and Planning
1 of 3
Ha Son Tung
10:00 am, 22 October 2013

I, __________________________ hereby confirm that this assignment is my own work and

not copied or plagiarized from any source. I have referenced the sources from which
information is obtained by me for this assignment.

_________________________
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Signature

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--------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE

ASSIGNMENT GRADE

Unit outcomes
Outcome

Understand
the process
of strategic
planning
(1)

Evidence for
the
criteri
a

Assessor
s decision

Feedback

Explain the
strategy
contents and
terminology
missions,
visions,
objectives,
goals, core
competencies

1.1

Produce an
organizational
audit for a
given
organization

2.1

Carry out an
environment
audit for a
given
organization

2.2

Explain the
significance of
stakeholder
analysis

2.3

Be able to
formulate a new
strategy
(2)

Merit grades awarded

M1

M2

M3

Distinction grades awarded

D1

D2

D3

Additional Feedbacks

Internal
Verificat
ion

Assignment
( ) Well-structured
Reference is done properly / should be done (if any)
Overall, youve

Areas for improvement:

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(Oral feedback was also provided)
STUDENT SIGNATURE

DATE

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I. Introduction
Milk is the indispensable thing in peoples lie, it does provide strengthen,
mental In some developed countries, milk has become a daily necessity and as a
culture of them .In these countries, the dairy companies often search for clean raw
material and focus on making a healthy life. Meanwhile, in Viet Nam there are a small
number of children who can approach to fresh milk, people still using not pure and
good quality of food
Therefore, this is the motivation for TH true Milk to invest and develop a closed
line to produce fine-quality food especially milk. In 14/05/2010, TH true Milk
manufactory was opened; from the first cow in February 2010, TH was expanded to
many stores in Ha Noi and Ho Chi Minh City. From this manufacture many quality
products such as UHT milk with natural spices. TH launched the UHT milk products
micronutrient supplements for children, additional adult nutrition, eating the yogurt,
yogurt drinks, yogurt yeast life continues upcoming production of pasteurized milk,
cream, cheese, butter ... the advantage of these products are the fresh dairy farm TH
pure quality assurance, not from imported milk powder. The inauguration marked the
process factory closed production of a new Lines of milk in NghiaDan, Nghe An, TH
Group. Not only is clean milk VN consumers will Be served by a variety of cleaning
products of TH True Milk brands such as fresh vegetables, milk for children growth,
milk for cardiovascular, diabetes, milk fresh collagen beauty for women, cheese,
cheese, cream, skim milk, ... Currently, TH True milk has 100 specialty retail stores
across the country, the line is expected to reach 1,000 by 2015 -2 016.

Figure 1: TH true Milk

Many children around Viet Nam had opportunity to get fresh milk; charity event
is another field which TH pays attention to increase the quality of life for children. On
the other hands, company gets a lot of support from Bac A bank and government

II.
1.

Body

Define the strategy contents and terminology and explain the

significance of stakeholder analysis to the corporation.
-

Strategy contents and terminology:

A. Vision:

Figure 2: Vision statement

Vision statements are clear view for all the members in a company and an
organization. It will help the company to see what should be done in the future,
recognize where company must spent time for and get the right profit:
There are 3 visions in the case of TH true Milk:
Focus on putting the interests of corporations in the interests of National
Development mode and build a sustainable health care quality with the products
manufactured by the company
Rationalize their benefits corporations rather maximizes profits
B. Mission:
Susan Ward said: A mission statement is a sort summarize of a company's
fundamental purpose. It show the answers of question, Why do we exist?" Generally,
mission statement such as an announcement of company; it will show what exactly
company do, essence or purpose of an organization.
With TH they create a strong mission by using foreign investment projects
focused on high-technology applications for agricultural to keep and develop stably
Nation. Then create a good competitive environment with rivals, increase the creative
in operation of employees; improve management quality. Moreover, they are trying
their best to become the leading in trademark attached to traditional culture,
professional; friendly and well equipped working environment, change the policy of
reward to keep the loyalty in employees

Figure 3: Mission statement

C. Objective:
Furthermore, objective is indispensable to make a successful strategy. Every
business, objective statements report will show exactly about the process of
companys business situation, makes company go the right way. In the TH Company,
there are some objectives such as:
Maximum concentration of responsibility, enhance creativity in the process
of working
Together, building a strong global company ,become the mode about dairy
farming in Vietnam
Fulfill the expectation of customers

Figure 3: Objective statement

D. Goal:
On the other hand, Goal is very important, it describe the specific ideas to get the
achievement in future. Goal relate to many aspect of vision and mission. For TH true
milk, it will become the best supplier milk supplier in Vietnam, fulfill 50% of the
needs clean fresh milk market. Furthermore, the ambition of the business beyond the
reach revenues over $ 1 billion (23.000 billion) in 2017, after reaching 4.000 billion in
2013 and 15,000 billion in 2015. (Zingnew, 2012)
E. Core Competence:

Figure 4: Core Competence

According to Businessdictionay, a special ability which a company acquires from
its founders or develops and it cant be easily imitated with other competitors. Core
competencies can give a company variety competitive advantages, so customers will
get a lot of benefit from it chosen field.
In case of TH true milk, this company has a private period which gives cows best
take care. At the two main cluster camp: second camp and sixth camp, tens thousands
of dairy cows are attached with automatic chip is for daily health monitoring.
Furthermore, cows have bath and listen classical music every day to produce the best
quality of milk. On the other hands, its technology is very model and new. All of
advantages above shows that TH wants to confirm that their milk is very special and
make customer had no doubt while using their products; TH had enough ability to
make rivals fear and lose market share
F. Competitive Advantage:
Competitive advantage results from matching core competencies to the
opportunities. A specific will be gained by an organization when it can provide the
same value as its competitors with a cheaper price, or higher prices by providing
greater value through differentiation.

- The significance of stakeholder :

Stakeholder is very important in every company or profit, non profit
organization. They have strong influence with decision making of manager; therefore
the success of company and business strategy depends on them a lot. Basically, there
are 3 types: Internal, External and Connected
In TH, The Internal stakeholders are employees and managers. The External
stakeholders are the government and communities. Then connected stakeholders are
shareholders, suppliers, customers and parties which invest or have dealings with the
firm. All of them will have right to give idea changing and gain the benefit from these
Therefore stakeholder can apply a map to control everyone who involved, realize
people who can get the most support through the change. Then, TH will chose a place

of stuff where take lot of impact to make a priority. Finally, developing stakeholder
plans to prove the successful of every business plan

Figure 5: Stakeholder Map

Key players :the main interest and power, TH true milk should build a strong
relationship with them, always satisfy their needs
Meet their needs: keep satisfied which stakeholders have the high power but
low interest, TH should try to satisfy them. However, the company doesnt
have to do every thing they want because it may make them feel bored.
Least important: they have low power and low interest; the company should
take care about them. Use the same strategy like meet their need group,
dont make them so excessive
Show consideration: They usually have low power and high interest, the
company must give enough clear information for them to make there is no
generate problem. A good detailed plan will make them show their potential
cause of the people in this group is really useful for the company's projects

Then not only the perspectives but also the expectations of TH Company among these
stakeholders will be discussed in details:

Internal:

, The internal stakeholders of TH Company are all staff such as the managers and
employees working in the company, engaging in Companys business transactions.
The quality of the managers and employees of the company will define the successful
of level and the development process of the firm. They take part in all process from
purchase material and facilities, collect milk, serving the customers and so on. The

role of managers and employees are very important, they not only provide products
but also give direct decision and encourage each other to increase quality
Employees: They have many influences in all aspect and take responsible for each
product, so they must be train and develop skill very often. This is the basic
foundation for company, they have right to work in friendly environment, bonus and
reward will be change to motivate them. Then, changing the details of job to make
them interest while operating and create a community in each staff.
Manager: They can take risky and take all responsible. A manager is the person
will decide when company will get profit or bankrupt. So they are very careful in
making decision and choosing employees for company. With TH Mrs. Thai Huong is
the Chief and 3 more members in board directors. They take the main role and build
up plans for staff to attract and keep their loyalty. They also have to satisfy the
stakeholders and shareholder by get as much as profit possible. Therefore, they will
have a strong belief and keep investing in TH true milk
External:
This group usually relate to criticism of government and social community. It outside
company so its purpose may not suitable with TH staff. Therefore, the effective of
business Law always tends to protect the customers interests and forces the company
to follow the rules, tax payment .Besides, the interest rate (monetary policy) will
affect the economy thus affect the business indirectly. TH should use media as a tool
to advertise their product as well as realize the strategy of rivals
Connected:
They are usually banks, shareholders and supplier, their relationship with
company base on contracts between them and TH. They care about the profit of
company because they are people who invested their money on THs business.
Shareholders can have important role in controlling and manage aspect of company as
well as governance. Banks will estimate the quality of TH in doing business, the ratio
and determine effectiveness of the companys business and investment. In fact that,
TH must create a good relationship with customers because it not only the
prerequisite but also the number of them. To do that , TH true milk try to increase the
flavor and listen to the needs of clients to make a higher quality products

2. Carry out an organizational audit and make an external

environmental audit for TH true Milk Company
Making a good strategy should base on analyze internal: strong and weak point,
of company, external will show the opportunity and threaten o analyze the external
environment; I will use the PESTEL, value chain models.
- Internal:
Core competence:
TH have well equipped with spacious factories, advanced production technology, .
skilled workers modern machineries, updated knowledge managers and experts from
Isarel where has the best coaching for milk. THcurrently have 30,000 dairy cows were
imported from the source are thoroughly tested on the origin and quality of the milk
as New Zealand, Australia,Canada. Include 14,000 cows give milk, remaining heifers
and calves.
Because of the well know brand, TH easily to attract the awareness of customers.
From this, creates the motivation for the company to develop and expand

Value Chain:

Figure 6: Value Chain

This is a perfect tool for managers to realize the firm from value chain of
organization and make the stable competitive advantage for each company. Company
will be dividing to two parts such as primary: the people that are related with
production and support: who made the background for effective and efficiency
Primary active:
a. Inbound Logistics: It is the activities of receiving, storing disseminating
incoming good and material for use. Raw materials are the first important
things because without it company cant do any thing. Therefore, TH created
a good relationship with suppliers and they always receive best material. So
suppliers are trustworthy
b.
Outbound Logistics: are the requirement steps to make products for the
customers. It includes warehousing, order fulfillments, etc. TH true milk
needs to check all the products to find any mistake, if there are no mistake
staff can deliver it. Besides, the employees have to pack, label, delivery and
so on. Until now, the TH didnt make any mistakes. Moreover, the
corporation always improve the quality of warehouse, check carefully the
date of milk product
c.Operation: It is the process of create and transform into finish product. In
this process human resources are the main, luckily TH always have the ,
professional staff, training and develop every day. Therefore, TH operate
very well without doubt
d.
Marketing and Sales: In this process company must announce to
customers and create strategy to attract them. 4P formula will show clearly
about TH operation:
Place: Milk and product from milk are distributed by 2 ways. The
first way is delivery to wholesaler and retailer who in
trademark. The second way is move to the third country or
using agencies in Vietnam.
Price: Because the processes of making milk are quite complex and
lost many steps so the price of TH may be higher than the
others. Therefore company must set a plan to control the
price in order to competive
Promotion: TH should create a friendly look for customers by
design beautiful logo with funny slogan because youth are
the main target in using milk

Product: TH true Milk often try to improve and change the quality
of their product to satisfy the needs of customers every day.
Company has to innovate the machinery to make new and
better products of. In 2 year 2011 and 2012, the number of
milk is about 20 million gallon and many products from
milk such as butter, cheese yogurts
e.After sale and service:
It is the final step including install and upgrade or repairs the product

Primary activity:
a. Procurement: includes the way to purchase materials, equipment and other
resources
b. Technology development: Improve and design the product to meet the trend
and customers needs
c. Human resource management: There are training, recruiting and encouraging
staff
d. . Management planning: Set up Plan, finance and increase quality control
- External:
Macro Environment:
Every business strategy is always affected by a lot of factors. Moreover, the
P.E.S.T.E.L factors have the main role on business behaviors and provide the
differences among the aspects of macro environment:

Figure 7: PESTEL
Political Factor: It includes law bylaws, procedures and regulations
manufacturing

techniques

to

create

corridor

for

business

activities. For example such as company have to pay tax every

monthly to show obey and respect with Government. Furthermore

law can affect to income and outcome of company. Honestly to be
said a factor that is most important to the development of business
is laws and rule, they has the specific impact on the results and
business activities of TH. It can force TH true Milk to improve its
products quality and help them to be more competitive.

Economical Factor: it effect directly on growth rate, interest rate,

exchange rate and inflation rate and the business activities.
Economy of VN is crisis many people are loosing their jobs,
company bankrupt and consumption of product are decrease
dramatically. On the other hands cost like electricity, water, fuel
increase day by day. Although TH got effects from this crisis but
company has change fluently to adapt with economy

Social factor: Education, Unemployment, life style and culture

are some aspects of social. If unemployment are high the rate
of employees

will be low , so TH should consider to make

there are no harmful with their performance from employees.

On the other hand, TH focus on improve skill of employees,
too. Causes of Vietnameses skill are very bad and it effect
directly to their income. Beside this , culture and habit have
the main effect to consumption, it easily to recognize that
citizen have tend to use milk more than people in country
Technology factors: Nowadays, people have opportunity to
approach with modern technology like internet . By design
beautiful website, TH will easily to attract not only domestic
clients but also foreign customers
Environment factor: In period from 2000 to 2010, economy of
Viet Nam has change a lot but the quality of environment are
decreased. Government have to make straight rule for
protecting environment, every company must obey and
control the input and output. For TH, this company follow a

green

cycle , all the garbage will be destructed carefully

after release to environment

Legal factor: It contains discrimination law, consumer law, antitrust law,
employment law, health and safety law which protect the advantage of
customers. TH Company should pay attention to these law to improve rule

Macro Environment:

There are some factor such as:

- The threat of new entrant.
- The bargaining power of customer (or buyer power
- The bargaining power of suppliers (or supplier power
- The threat from substitute products.
- The rivalry amongst current competitors in the industry
The threat of new entrant:
When apply this factor, I will consider about rivals. In fact that before TH company
open, there are a huge number of loyalty customers from others milk rivals from
another outside company in VNs market. However, rule as barrier to enter VNs
market, they will be:

The different of production: TH has create a special

picture which no company can do this Its partners feel satisfied with the
products, from the quality, design to the price. Customers will not find
any reasons to use product come from other brands. Any newbie compny
must be design a new flavor to attract custormer

IInvestment requirements :A new entrants will need a

large investment in order to make a faire competitive with another rivals

Switching cost: With custormer who wat to change in

using product to TH true milk they will care abou money, time and
convenient. TH may base on those criteria to build stores to get attention

Access to distribution channels: New company must

be prove their product, competitive advantage will be useful for them in
this step
Power of custormer:
There many competitors in domestic like Vinamilk, Moc Chau .. and from foreign
like Holland Lady For this reason, the customers in both domestic market and
foreign market could switch to use products from others company, so the bargaining
power of customers increase. Therefore, TH try to improve a lot in quality, diversify
products and serve customer well. They will be the advantages for TH to get loyal
customers
Power of supplier:
TH can buy cheaper material as well as decrease price, but it must be suitable
between material cost and the quality to be effectively meet the income of
customers.. On the other hands they should make a good relationship with suppliers
Threat from subtitles:
There are no subtitle for milk product because in all situations people still have to
use milk

 Itensity of competence:
This is unavoidable problems, TH have to face with all rivals from out and inside
VN. Firstly is economy crisis, although people have to use milk but if the price of
competitors reduces they will choose them not TH. Secondly, Rivals who have large
experience will make difficult with TH true Milk,because when tH enter the Europe
market they must face with form and quality barrier. Therefore, TH has increase
technology and invite expert from other countries to help them
SWOT analysis

Figure 7:SWOT analysis

There are detail about SWOT of TH
Strength (S)

Weaknesses (W)

1. Well known brand name in the

milk

industry

of

Vietnam

although tH is new.

1. Poor promotion channels to other

custormer

from

another

countries.

2. Experimental management teams.

2. Depends on export market.

3. Good quality products.

3. Still has to import machinery

4. Reasonable price.

from another countries and hire

5. Skilled labors.

experts

6. Good Mission and Vision, clear

objectives.
Opportunities (O)

Threats (T)

1. Install modern technology and

advanced equipment.
2. Expand

markets

1. Large numbers of competitor,

both domestic and international.

to

another

countries

2. High requirements for the quality

based on the international laws.

3. The needs for milk is increasing

3. Global economic crisis.

S1, S3, S4 with O2, O3: With these strengths, TH Company can serve well
in domestic and expand business to foreign countries. Since the context of
international economic crisis, foreign people tend to expense less than before
and then, TH know this and has a suitable price to make them convenient.
S2,S5 with T1: By using skill staff, TH will find no doubt in facing with
another competitor
W1 and W2: TH should develop more in technology in order to increase the
quality of advertisement
W1, W2 with T1, T3: Poor in promotion channels may decrease the interest
of customers from outside VN, especially nowadays advertising your own
picture is very important. As a result, the customers will tend to use their
inside countries companies products, which are better advertised and more
suitable. Moreover, domestic is not a good field because there are too much
competitors.

III.

Conclusion

TH true Milk is a strong company with good core competence and vision, mission. It
helps them to achieve many profits inside Viet Nam. However, they should focus on
foreign market than domestic because there are too much rivals in VN

IV.

Reference

http://www.thmilk.vn/vi/book
http://sbinfocanada.about.com/od/businessplanning/g/missionstatemen.htm
http://news.zing.vn/Tham-vong-cua-nguoi-dan-ba-thep-TH-True-Milkpost335238.html
http://www.businessdictionary.com/definition/core-competencies.html